Bitcoin surged to a record high of $116,800 on Friday, marking a fresh milestone for the world's largest cryptocurrency as it gained more than 5% in a single trading session. The digital asset broke through multiple resistance levels, clearing the $110,500 zone before extending gains above the $116,000 threshold.
What to Know:
- Bitcoin established a new all-time high at $116,800 after breaking above the $110,500 resistance zone
- The cryptocurrency is trading above key technical indicators including the $113,500 level and 100-hour simple moving average
- Technical analysis suggests potential for further gains toward $118,000 and $120,000 resistance levels
Technical Breakout Fuels Rally
The cryptocurrency's latest surge began after it cleared the $110,500 resistance zone, gaining momentum as it pushed past the $112,000 and $113,500 levels. Bulls drove the price through a bearish trend line that had provided resistance at $111,000 on the hourly chart of the BTC/USD pair, using data from Kraken exchange.
The rally accelerated as Bitcoin broke above the $115,000 resistance zone. The new all-time high at $116,800 represents a significant technical achievement for the cryptocurrency, which is now consolidating gains above the 23.6% Fibonacci retracement level of the upward move from the $110,600 swing low.
Bitcoin currently trades above both the $113,500 level and the 100-hour simple moving average, indicating strong bullish momentum. The immediate resistance on the upside sits near the $116,000 level, with the first key resistance at $116,200.
Market analysts point to the $116,800 level as the next critical threshold. A close above this resistance could propel the price toward the $118,000 resistance level, with additional gains potentially targeting $118,800 and the psychological $120,000 mark.
Potential Correction Levels Identified
Despite the bullish momentum, technical analysts have identified key support levels should Bitcoin fail to maintain its upward trajectory above the $116,800 resistance zone. The immediate support sits near $115,300, providing the first line of defense for bulls.
The first major support level is positioned near $113,700, corresponding to the 50% Fibonacci retracement level of the upward move from the $110,600 swing low to the $116,800 high. This level represents a critical technical marker for traders monitoring potential corrections.
Additional support zones include $113,200, with further downside potentially targeting $112,500 in the near term. The main support level remains at $110,500, below which Bitcoin could face continued downward pressure.
Technical indicators support the current bullish outlook. The hourly MACD is gaining pace in the bullish zone, while the RSI for BTC/USD has moved above the 50 level, indicating positive momentum.
Closing Thoughts
The cryptocurrency's breakthrough above multiple resistance levels signals strong institutional and retail interest in Bitcoin. Major resistance levels remain at $116,800 and $118,000, while support levels are established at $115,300 and $113,700.
Bitcoin's ability to maintain trading above the 100-hour simple moving average and key technical levels suggests the rally may have additional room to run. The $120,000 target remains the main objective for bulls pushing the cryptocurrency to new heights.